SPEECH 


EPHRAIM  BANKS,  ESQ. 

OF   MIFFLIN, 
DELIVERED   IN  THE 

CONTENTION, 

TO  AMEND  THE  CONSTITUTION  OF  PENNSYLVANIA, 
DEC  EMBER  22,  1837. 


support  of  an  Amendment  to  prohibit  Banks  from  issuing  Notes  of  a  less  denomination 
than  Ten  Dollars,  as  oflered  by  Mr.  Read  of  Susquehanna. 


PHILADELPHIA, 

PRINTED  BY  JOHN  WILBANK, 
No.  %  Shoemaker  Street* 
1837. 

FOR  SALE  AT  THIS  OFFICE— PRICE  SIX-CENTS. 


SPEECH 


Of  EPHRAIM  BANKS,  Esq.,  of  Mifflin,  delivered  in  the  Convention,  to  amend  the  Constitution 
of  Pennsylvania,  December  22,  1837,  in  support  of  an  Amendment  to  prohibit  Banks  from 
issuing  Notes  of  a  less  denomination  than  Ten  Dollars. 


Mr.  Banks  said  he  did  not  rise  to  ex- 
press the  sentiments  of  a  delegate  from 
the  "woods  of  Susquehanna,"  or  'the 
"  hills-  of  Indiana,"  but  of  a  delegate 
fronvthe  mountains  of  the  Juniata — and: 
he  would  do*  so-plainly  and  respectfully. 
His  constituents- would  think  him  negli- 
gent of  their  interest  and'  derelict  in 
.duty  if  he  should  remain  longer  silent. 
The  subject,  he  said,  was  excitingand 
imposing,  and  nothing  but  a  solemn 
sense  of  duty  could  induce  him  to  at- 
tempt to  discuss  it,  and1  if  he  followed 
the  example  set  by  most  of  those  who 
had  gone  before  him  in  discussing  the 
pending  question — he^might  discuss  ev- 
ery thing  else  that  he  had'  heard  or 
thought  of.  Without  any  reflection  upon 
the  President,  he  would  take-  leave  to 
say,  that  after  the  fashion  of  the  wisest 
of  men,  he  in  his  anxiety  "  spake  of 
things  fromthe  stately  cedar  of  Lebanon, 
to  the  hyssop  that  springeth  out  of  the 
wall."  He -was  always  ready  to  hear 
that  gentleman  on  account  of  his  intelli- 
gence and  ability  to  discuss  whatever  he 
undertook,  ably  if  not  satisfactorily,  but 
he  thought  he  had  rambled  in  speaking 
upon  this  question,  more  than  usual. 

The  same  remark  might  be  made  re- 
lative to  others  without  offence,  as  he 
trusted,  when  he  assured1  them  there 
was  none  intended. 

They  who  had  given  attention  to  the 
propensities  of  the  human  mind,  know 
full  well  that  it  is  prone  to  covetousness 
— that  from. the  fall  of  Jerich©  tothe-pre- 
sent  time;  it  has  caused  the  destruction 
of  individuals,. families  and  nations.  At 
the-overthrow  of  the  city  of  Jericho,. a 
curse  was-  denounced  against  such  as 
would  touch  or  take  any  of  the  proper- 
ty of  the-inhabitants,  and  notwithstand- 
ing this*  covetousness  prevailed  in  the 
toast  of  one-  man  ot  the-  army  of  Jo- 


shua^— and  the  whole  family  of  that  man 
was  cut  off — and  what  he  had  was  burnt 
with  fire  in  the  the  valley  of  Achor,  for 
his  transgressions.  Gold,  siver,  and  a 
Babylonish  garment  prevented'  the  suc- 
cess^ the  Israelitish  army  for  a  time — 
caused^  the  mourning  of  the  whole  na- 
tion, and  the  dreadful1  extermination  of 
Achan.  and  his  family.  When  Paul 
preached  against  the  worshipping  of 
false  Gods  at  Ephesus,  he  was  clamored 
against  by  those  whose  business  it .  af- 
fected. Demetrius,  who,  it  seems,  was 
most  injured  in  his  business  by  the 
preaching:  of  Paul  j  and  the  disuse  of  cer- 
tain silver  shrines,  complained — excited 
those  who  were  of  the  same  craft  or 
business,  to  insurrection,  by  crying  out 
(as  some  do  now  about  another  institu- 
tion) "  great  is  Diana  of  the  Ephesians/' 
By  this  croft  we  have  our  wealth — not 
living,  but  wealth. 

He  knew  it  was  unpleasant  to  be  told 
of  our  misdeeds,  and'  the  instruction  of 
history,  sacred:  and  profane,,  is  that  the 
reformer  of  abuses  performs  for  the  time, 
a  thankless  and  unprofitable  office. 
The  man  who  would  engage  in  the 
work  of  convincing  him  that  hia  moral 
deportment  was  not  what  it  should  be, 
improper  and  vicious  as  it  might  be, 
would  probably,  according  to  the  expe- 
rience of  the  times,  be  treated  with  in-' 
dignty.  Whatever  interferes  with 
the  interest  or  vicious  habits-  of  men,  is 
likely  to  induce  their  indignation,  their 
anger,  &c.  But  be  that  as  it  might,  he 
had  a  duty  to  perform  which  had  been 
committed  to  him,  and  charged  upon, 
him  by  his  constituents,  that  he  could- 
not,  and  that  he  must  not  abandon,  more 
especially  in  this  commercial  metropolis 
of  this  great  State.  This  city,  the  pride 
of  all  of  us,  as  our  commercial  empo- 
rium, hut  filled  with  all  manner  of  stock. 


jobbing  and  speculation.  Surrounded  as 
he  was  by  persons  interested  one  way 
ond  another  in  Banking  institutions, 
Presidents,  cashiers.directors,  and  stock- 
holders, and  from  many  of  whom  he 
had  received  respectful  and  kind  atten- 
tion, he  would  as  mucli  as  possible  avoid 
all  exciting  expressions,  while  he  would, 
at  the  same  time  speak  plainly  against 
the  destructive  principles  and  practices 
of  the  present  Banking  system  in  Penn- 
sylvania, and  the  country.  A  system 
which  was  regarded  by  many  of  the  best 
citizens  in  the  Commonwealth  as  tend- 
ing to  sap  the  foundations  of  our  free 
system  of  government;  a  system  des- 
tructive of  equal  rights,  and  tending  to 
pass  the  power  of  the  government  from 
the  many  to  the  few;  a  system  no  better 
in  character  than  the  rotten,  borough 
system  of  England. 

Gentlemen,  he  said,  tell  us  that  we 
who  advocate  the  restrictive  system — 
who  are  favorable  to  enjoining  it  upon 
the  legislature  to  prevent  Banks  from 
issuing  notes  of  a  less  denominatiou 
than  ten  dollars,  are  opposed  to  com- 
merce— to  credit — and  wish  to  destroy 
the  Banking  institutions  of  the  country. 
We,  he  said,  deny  it.  Every  speaker 
on  the  side  of  restriction  has  denied  it, 
and  still,  gentlemen,  insist  upon  it.  Be 
it  so — it  is  preposterous,  and  he  would 
not  trouble  the  committee  with  further 
denial.  No,  Sir,  he  said,  the  friends  of 
this  amendment  only  desire  the  legisla- 
ture to  be  compelled  to  place  ligatures 
round  the  banking  institutions  of  the 
State,  so  as  to  prevent  expansions  and 
contractions,  which  may  suit  the  views 
and  interests  of  speculators,  but  which 
are  injurious  to  the  morals  and  interests 
of  the  whole  people. 

Gentlemen,  said  Mr.  B.  call  those  who 
desire  reform  in  the  banking  system  of 
the  State  and  country,  agrarians,  loco 
focos,  and  all  manner  of  hard  names. 
Sir,  he  exclaimed,  reformers  are  neither 
frightened  nor  injnred  by  hard  names. 
They  have  always  been  spoken  of,  and 
treated  with  indignity,  by  the  nobility 
•and  aristocracy  of  every  country.  Their 
fathers  of  the  Revolution,  "  who  fought 
and  bled  in  freedom's  cause, V  were  called 
rebels — mocked  and  sneered  at  by  the 


minions  of  power ;  but  they  persisted 
in  their  resistance  of  tyranny,  and  suc- 
ceeded ;  and  so  will  their  sons  at  all 
times,  and  in  every  exigency — if  they 
ask  for  nothing  that  is  not  right,  and 
submit  to  nothing  that  is  wrong. 

His  long  tried  and  fearless  friend,  from 
Indiana,  (Mr.  Clarke,)  had  been  reflected 
upon  severely,  for  preferring  the  aristo- 
cracy of  the  sword  to  the  aristocracy 
of  money.  Gentlemen  will  recollect, 
that  John  Randolph  said,  when  oppos- 
ing the  re-charter  of  the  old  United 
States  Bank— If  I  must  have  aristocracy, 
let  it  be  that  of  the  epaulette — some- 
thing that  I  can  respect,  while  I  fear ; 
not  the  aristocracy  which  commands 
and  rules  with  a  quill  behind  the  ear  ! 
The  idea  is  the  same,  and  the  conclu- 
sion the  same. 

How  could  it  be,  that  preventing 
banks  from  issuing  notes  of  a  less  deno- 
mination than  ten  dollars,  would  des- 
troy them?  Gentlemen  do  not  believe 
it  themselves.  He  asked,  did  the  act  of 
Parliament  of  1826,  prohibiting  the 
Bank  of  England  from  issuing  noUs  of 
a  less  denomination  than  Jive  pounds 
destroy  that  institution  1  Did  the  act 
of  our  legislature  of  1828-9,  prohibit- 
ing the  issuing  of  notes  by  the  banks  of 
a  less  denomination  than  five  dollars, 
destroy,  or  in  the  least  degree  injure  the 
banks  or  their  standing  with  the  people! 
No,  Sir  The  banks  were  not  injured, 
and  the  people,  by  these  acts,  obtained 
and  handled  gold  and  siver  instead  of 
rags. 

It  is  a  curious  fact  connected  with 
this  discussion,  he  said,  that  while  the 
opponents  of  reform  admit;  aye,  and  are 
forced  to  admit,  that  the  present  system 
is  defective  and  ought  to  be  reformed, 
not  one  of  them  has  offered  a  single 
amendment,  but  the  gentleman  from 
^Lancaster,  (Doct.  Cochran)  and  it  is  not 
much  more  than  an  apology  for  an 
amendment.  However  small  as  it  was 
he  would  take  it  for  so  much  and  hope 
for  more. 

The  conduct  of  gentlemen  reminded 
him  of  the  conduct  of  persons,  who 
when  talked  to  about  improprieties  in 
relation  to  their  moral  conduct,  would 
admit  all  you  alleged  against  them,  and 


talk  of  reform;  but  'the  time — the  con- 
venient season,  never  came.  Let  them 
come  up  to  the  work  like  men,  and  offer 
their  propositions  of  amendment,  and 
they  will  then  learn  who  will  "toe  the 
mark."  This  is  all  his  friend  from  Lu- 
zerne  (Mr.  Woodward)  intended,  when 
he  used  the  offensive  word,  coward,  in 
speaking  on  this  subject. 

He  said,  he  would  not  follow  gentle- 
men in  their  rambles  after  currency  all 
over  the  world — what  was  it  to  the 
committee,  to  this  community,  he  meant 
the  State,  and  country — if  gentlemen 
preferred  an  extended  view,  that  shells, 
and  leather,  and  iron,  had  been  used  as 
currency  in  one  country  and  another  in 
the  world,  thiscommmittee  has  nothing 
to  do  with  them,  or  any  one  of  them,  as 
currency.  This  government,  State  and 
general,  has  to  do  with  but  gold,  silver, 
and  paper  as  currency. 

He  would,  now,  he  said,  state  the  ori- 
gin, rise,  and  progress  of  banking,  as 
made  known  by  history,  and  as  known, 
in  the  United  States,  as  briefly  as  he 
could,  from  the  Bank  of  Venice  to  th% 
Bank  of  the  United  States,  as  it  is  now 
in  existence — not  of  all  the  institutions 
of  that  kind  which  had  existed,  but  of 
some  of  the  leading  ones — and  here  he 
would  take  leave  to  say,  that  he  doubt- 
ed whether  this  enquiry  and  discussion 
would  have  been  introduced,  had  it  not 
been  for  the  refusal  of  the  re-charter  of 
the  U.  S.  Bank,  and  the  charter  as  grant- 
ed subsequently,  by  the  Legislature  of 
Pennsylvania,  to  the  present  stockhold- 
ers of  the  present  Bank  of  the  United 
States.  Gentlemen  could  judge  for 
themselves,  and  their  constituents  judg- 
ed for  themselves,  as  to  the  why  and 
the  wherefore  of  the  refusal  to  re-char- 
ter, and  the  agreement  subsequently  to 
charter  the  existing  institution.  They 
could  and  would  judge  of  how  far  poli-* 
tical  considerations  and  controversy  had 
been  carried  to  prevent  the  one  and 
cause  the  other.  They  could  and  would 
judge  of,  whether  or  not  the  late  Bank 
of  the  United  States  had  attempted  to 
interfere  with  the  Administration  of  the 
Government.  All  have  some  belief  on 
this  subject,  and  act  according  to  their 
belief. 


When  'complaint  is  made  against 
this  institution,  the  opponents  of  demo- 
cracy talk  of  New  York  influence.  He 
could  say  to  them,  that  he  was  a  Penn- 
sylvanian  in  every  particular,  hoped  she 
would  always  be  right,  and  always  suc- 
cessful 

The  Bank  of  Venice  was  establish- 
lished  in  1 171,  during  the  Crusades,  and 
for  the  purpose  of  rendering  assistance 
to  those  expeditions.  It  was  a  Bank  of 
deposite  only,  and  strictly  a  public  bank, 
as  the  government  became  responsible 
for  the  deposites.  The  whole  capital 
was  in  effect,  a  public  loan — the  funds 
of  the  bank  being  made  use  of  by  the 
government ;  and  in  the  early  period 
of  the  operations  of  this  bank,  they  were 
not  withdrawn  when  once  deposited; 
but  the  depositor  had  a  credit  at  the 
bank  to  the  amount  deposited;  and  he 
used  the  money  so  deposited,  by  trans- 
ferring this  credit  to  another  person  in- 
stead of  paying  money.  Subsequently 
however,  the  deposites  were  allowed  to 
be  withdrawn ;  for,  though  the  bank  cre- 
dits answered  all  the  purposes  of 
money  at  Venice,  a  specie  currency 
was  [wanted  by  persons  going  abroad, 
or  having  payments  to  make  in  distant 
places.  This  bank  continued  in  opera- 
tion until  the  dissolution  of  the  republic 
in  1798. 

The  Bank  of  Amsterdam  was  estab- 
lished in  1609,  and  owed  its  origin  to 
the  clipped  and  worn  currency,  which 
being  of  uncertain  and  fluctuating  value, 
subjected  the  exchanges  to  a  corres- 
ponding fluctuation  and  uncertainty. 
The  object  of  the  institution  was  to  give 
a  certain  and  unquestioned  value  to  a 
bill  on  Amsterdam ;  and  for  this  pur- 
pose the  various  coins  were  received  in 
deposit  at  the  bank  at  a  certain  value, 
according  to  their  weight  and  fineness, 
a  small  deduction  being  made,  equiva- 
lent to  the  supposed  expense  of  coin- 
age into  money,  of  the  proper  weight 
and  fineness,  and  the  depositor  was  al- 
so required  to  pay  a  small  amount  for 
the  privileges  of  having  an  account  at 
the  bank.  In  one  respect,  this  bank 
differed  from  that  of  Venice,  as  the  depo- 
sits were  not  taken  out  and  used  by  the 
government,  but  remained  in  the  vaults. 


This  was  a  bank  merely  of  deposite  and 
transfer:  neither  made  loans  nor  circu- 
lated bills.  The  direction  of  this  bank  was 
placed  in  the  hands  of  four  burgomas- 
ters or  aldermen,  chosen  annually,  and 
no  peculation  or  breach  oftrust  had  ever 
happened  in  it. 

The  Bank  of  Hamburg  was  estab- 
lished about  ten  years  after  that  of  Am- 
sterdam, and  like  this  latter,  was  a  mere 
bank  of  deposit  and  transfer.  The  de- 
posfeites  being  made  in  coin  or  bullion, 
at  a  certain  fixed  rate,  and  liable  to  be 
withdrawn  by  the  depositors:  anyone 
having  credit  at  the  bank,  might  draw 
out  the  amount  of  his  credit.  The  bank 
had  not  properly  any  capital  of  its  own; 
the  whole  funds  being  liable  to  be  with- 
drawn at  any  moment. 

The  directors  of  this  bank,  five  in 
number,  were  chosen  annually,  by  the 
whole  body  of  the  citizens  of  Hamburg, 
having  a  right  to  vote  for  municipal  offi- 
cers. 

The  Bank  of  England  was  one  of  de- 
posit, discount  and  circulation.  It  was 
chartered  in  tne  reign  of  William  and 
M-ary,  1693,  seventy  or  eighty  years  af- 
ter those  of  Amsterdam  and  Hambnrg, 
and,  by  an  act,  among  other  things,  se- 
cured certain  recompenses  and  advan- 
tages to  such  persons  as  should  advance 
the  sum  of  £1,500,000,  towards  carry- 
ing on  the  war  against  France. 

This  bank  was  first  chartered  for 
eleven  years,  and  the  corporation  deno- 
minated the  Governor  and  Company  of 
the  Bank  of  England.  Like  that  of  Ve- 
nice, and  unlike  the  banks  of  Amsterdam 
and  Hamburg,  this  bank  was  originally 
an  engine  of  the  government,  and  not 
a  mere  commercial  establishment.  On 
a  capital  of  eleven  millions  of  pounds, 
the  bank  receives  interest  on  between 
thirty  and  forty  millions,  including  the 
interest  on  the  government  loans,besides 
the  bonus  annually  paid  by  the  bank  for 
its  agency  in  the  financial  concerns. 
This  accounts  for  the  high  rate  of  divi- 
dends made  on  the  capital  stock  as 
above  stated,  being  between  two  and 
three  times  the  current  rate  of  interest 
in  Great  Britain.  Since  February,  1829, 
this  bank  has  not  issued  notes  of  a  less 
denomination  than  £5. 


The  Bank  of  France  was  establish- 
in  1803,  by  the  union  of  three  private 
banking  institutions  of  Paris. 

It  is  strictly  a  government  institu- 
tion. The  capital  was  in  1807,  increas- 
ed from  45,000,000  to  90,000,000  of 
francs,  and  the  charter  extended  to  for- 
ty years.  It  makes  a  clear  profit  to  the 
stockholders  of  about  twenty  per  cent  : 
issues  no  small  notes,  and  the  great  part 
of  the  currency  of  the  kingdom  is  spe- 
cie. 

The  old  bank  of  the  United  States 
was  incorporated  by  an  act  of  Congress 
passed  in  February,  1791.  By  the  li- 
mitation of  its  charter,  it  was  to  expire 
on  the  4th  oi  March,  1811.  This,  like 
the  Banks  of  England,  France  and  Swe- 
den, was  a  bank  of  deposit,  discount, 
and  circulation,  with  a  capital  of  10,000,- 
000. 

The  late  bank  of  the  United  States 
was  chartered  under  an  act  of  Congress 
of  April  10,  1816,  for  twenty  years, 
with  a  capital  of  $35,000,000.  The 
stockholders  paid  to  the  government  a 
bonus  of  $1,500,000;  and  the  govern- 
ment held  at  the  same  time  one-fifth  of 
the  stock.  The  charter  expired  on  the 
4th  of  march,  1836 — Congress  refused 
to  re-charter  the  institution,  and  the  le- 
gislature of  Pennsylvania,  by  act  of  As- 
sembly of  February,  1836,  allowed  it  a 
charter  for  thirty  years,  on  the  condi- 
tions mentioned  and  set  forth  in  the  act. 
He  deemed  it  unnecessary  to  recite  the 
terms  and  conditions  upon  which  that 
bank  was  chartered.  He  believed  they 
were  sufficiently  known  to  the  commit- 
tee and  the  country,  and  would  not  then 
turn  the  attention  of  the  committee  to 
them.  Nor  would  he  then  detain  the 
committee  with  any  remarks  of  his  re- 
lative to  the  impropriety  of  granting 
the  charter  of  the  present  barik  of  the 
United  States,  or  the  repealing  power, 
and  the  right  to  exercise  it,  but  would 
leave  these  topics  for  future  times,  par- 
ticularly, the  last.  '  The  first  he  would 
notice  to  some  extent  before  he  would 
sit  down. 

He  would  then  turn  the  attention  of 
the  committee  to  the  history  of  paper 
money  in  the  colony  and  State  of  Penn* 


sylvania,  and  the  Continental  money  of 
the  Revolution.  The  first  paper  money 
issued  in  the  colony  of  Pennsylvania, 
was  issued  in  1723. 

The  Province  of  Pennsylvania  made 
its  first  experiment  of  a  paper  currency 
in  that  year.  It  issued  in  March  fifteen 
thousand  pounds,  on  such  terms  as  ap- 
peared likely  to  be  effectual  to  keep  up 
the  credit  of  the  bills.  It  made  no  loans 
but  on  land  security,  or  plate  deposited 
in  the  loan  office ;  obliged  the  borrowers 
to  pay  five  per  cent ;  and  made  its  bills 
a  tender  in  payment  of  all  debts. 

The  first  continental  motley  was  emit- 
tep  by  Congress,  in  1775;  but  the  notes 
were  not  in  circulation  till  the  August 
following.  Till  the  issues  extended  to 
nine  millions,  the  bills,  according  to  the 
testimony  of  Mr.  Jefferson,  passed  at 
their  nominal  value.  The  depreciation 
afterwards  was  very  great.  In  1781, 
the  continental  bills  ceased  to  circulate 
as  money;  but  they  were  afterwards 
bought  up  on  speculation,  at  various 
prices,  from  four  hundred  to  one  thou- 
sand for  one. 

The  next,  and  first  by  a  banking 
company,  was  by  the  Bank  of  North 
America.  Then  followed  the  Bank  of 
Pennyl  vania,  in  1791,  and  with  the  avow- 
ed object  of,  as  all  the  friends  of  the  paper 
system  has  always  been,  aiding  and  faci- 
litating commercial  transactions.  And 
where  is  the  man,  he  asked,  that  would 
allow  his  money  to  lie  in  bank  at  six 
per  cent,  whilst  engaged  in  trade  and 
commerce]  He  must  either  have  more 
than  six  per  cent,  per  annum  for  it,  or 
he  would,  knowing  that  he  could  make 
more  by  it,  risk  it  in  trade  or  commerce. 
And  here,  he  .would  take  leave  to  re- 
mark that  much  as  the  people  of  this  coun- 
try, loved  their  institutions,  civil  and  reli- 
gious, if,  they  are  ever  impaired,  ever  sap- 
ped, and  undermined — the  train  will  be 
laid  in  commerce.  The  desire  to  buy 
and  sell,  in  view  of  gain,  sets  at  nought 
all  municipal  regulations;  and  certainly 
in  many  correct  moral  feeling  and  ac- 
tion. An  old  friend  of  his,  and  who 
was  a  member  of  Congress  during  the 
orreat  battle  about  the  tariff,  in  perhaps, 
1 824,  had  said  to  him,  being  a  friend  of 
the  tariff  system,  and  now  battling  it 


stoutly  on  the  whig  side,  mpolitics,  that 
if  ever  the  liberties  of  this  country 
should  be  destroyed,  it  would  be  by  lux- 
ury introduced  through  the  instrumen- 
tality of  commerce.  He,  Mr.  B.,  then 
instanced  the  fact  of  the  continued  trade 
in  British  manufactured  toys,  or  images, 
made  of  silver,  brass,  and  other  metals, 
with  the  Hindoos  in  India ;  while  Bible 
societies,  and  Missionary  societies,  were 
exerting  themselves  to  convert  them  to 
the  truths  of  the  Christian  religion.  Let 
the  love  of  gain  be  the  master  passion 
with  any  man,  or  set  of  men,  and  it  swal- 
lows up  every  thing  else  that  is  valuable. 

He  then  proceeded  to  show,  that  the 
destruction  of  the  cities  of  Greece — the 
government  Itself — and  the  government 
of  every  county  which  had  risen  and 
fallen,  had  so  risen  and  fallen  from  lux- 
urious and  voluptuous  living  introdu- 
ced by  commerce.  The  Persians,  he 
said,  could  never  have  succeeded  in  the 
overthrow  of  the  Greecian  government, 
if  it  had  not  been  for  their  gold,  their  cur- 
rency, if  gentlemen  preferred  the  word 
currency,  and  consequent  effiminency 
among  the  Greeks.  History,  he  said, 
informs  us,  that  Persian  gold  accom- 
plished, in  the  destruction  of  Greece, 
what  Persian  steel  could  not — and  so 
it  had  been,  and  in  his  opinion  would  be, 
to  the  end  of  time. 

It  was  attempted  to  distinguish  be- 
tween the  gold  and  the  paper  system  of 
this  country;  but  none  can  tell  what 
may  be  effected  in  the  destructoin  of 
our  liberties  by  ihe  paper  system,  as  it 
•exists  at  present  in  this  country,  with 
foreign  gold  for  its  basis. 

The  government  of  Sparta,  as  found- 
ed by  Lycurgus,  and  one  of  the  most 
enduring,  was  founded  upon  the 
purest  principles,  of  liberty,  industry, 
temperance,  patience,  virtue,  justice,' 
and  valor.  It  taught  the  most  sovreign 
contempt  of  riches,  idleness,  luxury,  ef- 
feminency,  cowardice,  and  sloth ;  alike 
disclaimed  the  principles  of  ambition, 
and  conquest ;  was  sanctioned  by  the 
oracle  of  Delphos — rendered  permanent 
by  an  oath  of  his  country,  to  maintain 
the  constitution  in  his  absence,  until  he 
should  return ;  sealed  by  his  voluntary 
banishment  and  death;  continued  in 


successful  operation  about  five  hundred 
years  j  enabled  Sparta  to  triumph  over 
Athens  in  the  Peleponesian  war,  and' 
became  the  arbiter  of  Greece. 

All  Sparta  was  one  great  school ;  and 
the  maxims  of  his  government  were 
the  fundamental  principles  of  education. 
Rational  knowledge  formed  the  wisdom 
of  Sparta. 

The  difference  of  character  between 
the  Athenians  and  Spartans,  was  such 
as  is  common  to  states  which  are  agri- 
cultural and  commercial.  Sparta  was 
agricultural — Athens  commercial;  the 
seat  of  the  muses  and  the  arts.  Solon, 
as  the  chief  magistrate,  or  Archon  of 
Athens,  attempted  to  reform  her  govern- 
ment, and  reduce  it  to  a  practical  sys- 
tem— but  failed.  He  lived  to  see  it 
overthrown  and  destroyed.  Leaving 
Athens  under  the  dominion  of  the  ty 
rant,  Pisistratus. 

He  would  then  read  some  extracts 
from  a  work  on  Banking,  as  written 
and  published  by  a  gentleman  of  the 
name  of  GOUGE,  whom  he  knew  nothing 
of  'personally ;  but  judging  from  the 
work  he  held  in  his  hand,  on  the  snb- 
ject  mentioned,  he  must  be  a  man  of 
intelligence,  and  treated  it  as  though  he 
was  acquainted  with  it.  On  the  ways 
and  means  of  obtaining  acts  of  incor- 
poration for  bank  charters,  he  says; — 

•*  When  a  bill  was  under  considera- 
tion in  the  year  1828,  to  renew  the 
charter  of  the  New  York  State  Bank, 
General  Root,  then  Speaker  of  the 
Senate  of  that  commonwealth,  made  the 
following  statement :" 

"  This  Bank  was,"  he  said,  "  charter- 
ed in  1803,  whoever  the  original  appli- 
cants, and  whatever  the  representations 
made  to  the  country  members,  it  is  not 
necessary  to  state ;  at  all  events,  it  was 
to  be  a  State  Bank,  and  a  democratic 
one.  I  was  urged  to  be  a  subscriber 
to  the  Bank;  it  was  said  the  shares  were 
to  be  scattered  over  the  State,  and  the 
members  of  the  Legislature  were  to 
have  shares.  It  was  one  of  the  most 
open,  bare-faced  acts  of  bribery  that 
can  be  imagined.  I  was  induced  to  sub- 
scribe; but  I  lost  all  the  shares,  t>ut  a 
few;  they  said  they  had  lost  the  sub- 
scription paper,  or  some  such  thing.  I 


afterwards  had  the  offer  of  script  for 
eight  shares.  I  would  not  take  it ;  so' 
they  took  them  to  themselves  as  I  sup- 
pose." 

"  In  1816,  Mr.  Hopkinson,  of  Phila- 
delphia, had  the  boldness  to  declare,  in 
Congress,  that  he  considered  the  litter 
of  banks  lately  created  in  Pennsylvania, 
as  the  offspring  of  private  speculation 
and  legislative  fraud." 

Here,  Mr.  B.  remarked,  that  the  hon- 
orable gentleman,  now  one  of  delegates 
from  the  city,  is  the  same  who  made  the 
statement  quoted — and  now  advocating 
for  the  banks. 

"  To  get  a  majority  to  vote- for  a  new- 
bank,  is,  in  some  instances,  no  difficult 
undertaking.  In  Pennsylvania,  there  is 
a  mode  of  running  bills  through  both 
Houses,  kncwn  technically  as  "  log-roll- 
ing." In  this  way  it  may  chance  that 
fifty  or  a  hundred  bills  are  passed  in 
the  course  of  a  session ;  each  of  which, 
if  suffered  to  rest  on  its  own  merit, 
would  have  been  rejected. 

"  Many  members,  of  the  legislature, 
are  averse  to  this  practice ;  but  many  c  f 
them  are  reluctantly  brought  into  it,  by 
the  refusal  of  the  "  log-rolling"  mem- 
bers to  vote  for  good  public  bills,  unless 
their  own  private  bills  are  passed  at  the 
same  time !" 

Mr.  Banks,  then  remarked,  that  the 
experience  of  every  gentleman  in  the 
committee,  who  had  been  a  member  of 
the  legislature,  would  enable  him  to 
judge  whether  this  statement  was  or  was 
not  correct — he  would1  leave  gentlemen 
to  their  own  reflections  and  conclusions. 

Mr.  B.  then  said;  he  would  turn  to  the 
remarks  of  this  writer  upon  the  subject 
of  the  advantages  which  this  banking 
system  gives  to  some  men  over  others. 
He  would  be  as  brief  as  possible  to  be 
understood. 

"  To  test  the  banking  principles  fairly. 
Suppose  a  county  to  contain  a  thousand 
families,  of  ten  persons  each,  and  each 
family  to  be  worth  five  thousand  dollars; 
the  tenth  of  this  wealth,  or  five  hundred 
dollars,  for  each  family,  we  will  suppose 
to  be  in  jsilver  money — -the  rest  is  in 
land,  houses,  and  various  commodities. 
The  state  of  credit  in  this  county  is  as 
sound  as  the  state  of  the  currency.  The- 


distribution  of  wealth  is  left  to  natural 
laws.  The  production  and  acquisition 
of  riches  are  never  separated,  Every 
man  enjoys  what  he  produces,  and  what 
he  saves ;  and  no  man  enjoys  what  is 
produced,  or  what  is  saved  by  another. 
We  will  suppose  the  income  of  this  com- 
munity to  be  one  million  of  dollars,  or 
one  thousand  dollars  a  year  for  each  fa- 
mily, and  that  seven  hundred  thousand 
dollars  of  this  aggregate  income,  is  de- 
rived from  industry,  and  the  rest  from 
capital  profits,  being  at  the  rate  of  six 
per  cent.  In  this  county  are  ten  men 
of  a  speculative  turn  of  mind,  who  grow 
tired  of  working  and  saving,  and  wish 
to  grow  rich  in  some  more  easy  way. 
They  apply  to  the  legislature  for  a  char- 
ter for  a  bank,  with  a  nominal  capital 
of  one  hundred  thousand  dodllars,  di- 
vided into  one  thousand  shares,  of  one 
hundred  dollars  each;  and  their  prayer 
is  granted.  It  is  provided  in  the  char- 
ter that,  as  soon  as  five  dollars  shall  be 
paid  on  each  share,  the  bank  shall  com- 
mence operations.  The  payment  of  the 
other  instalments  is,  according  to  the 
custom  in  Pennsylvania,  left  to  the  dis- 
cretion of  the  directors." 

"  The  business  of  banking  is  now  in 
this  county,  and  as  none  clearly  under- 
stands its  operation  but  the  ten  specu- 
lators, they  subscribe  for  the  whole  of 
the  stock,  or  for  one  hundred  shares, 
each." 

"The  Bank  then  commences  business, 
and  issues  notes  to  the  amount  of  twen- 
ty-five thousand  dollars.  By  the  contri- 
trivance  of  "  convertibility,"  and  by 
another  contrivance,  by  which  they  are 
made  receivable  in  payment  of  the  dues 
to  the  government,  the  notes  become 
current.  The  notes  are  borrowed  by 
the  speculators.  Each  speculator  has 
then,  two  thousand  five  hundred  dollars 
at  command,  instead  of  five  hundred. 
It  is  true,  he  pays  interest  to  the  bank 
as  a  borrower;  but  he  receives  the  same 
Interest  back  as  a  stockholder.  Thus 
it  is  evident,  that  the  equality  of  wealth 
is  destroyed." 

"The  possession  of  a  moneyed  capital, 
so  much  greater  than  that  of  his  neigh- 
bors, will  give  him  advantages  in  trade, 
equal  to  double  the  amount  of  interest. 


But  estimating  his  advantages,  as  equal 
only  to  six  per  cent :  his  annu*al  income 
is  increased  from  one  thousand  dollars 
to  one  thousand  one  hundred  and  twen- 
ty. His  five  huudred  dollars,  which  for- 
merly yielded  him  but  thirty  dollars  in 
a  year,  are  now,  by  their  conversion  in- 
to bank  stock,  made  to  yield  him  one 
hundred  and  fifty;  for  each  metallic  dol- 
lar is,  by  this  contrivance,  made  to  pro- 
duce as  much  as  five  did  formerly." 

"  this  is  only  the  first  operations  of 
the  bank.  Some  of  the  families  of  the 
county,  deposite  their  silver  in  the  vaults 
of  the  bank  for  safe  keeping.  Other  fa- 
milies, finding  that  bank  notes  serve  all 
the  purposes  of  domestic  trade.  This 
creates  a  new  demand  for  bank  notes  as 
a  circulating  medium.  In  time,  the  bank 
finds  that  its  permanent  deposites  of  sil- 
ver, afe  not  liable  to  be  reduced  beyond 
a  certain  amount,  and  to  increase  its  pro- 
fits, it  lends  siver  to  those  who  export 
it." 

**  The  time  has  now  come,  in  which 
the  speculators  may  sell  a  part  of  the 
whole  stock;  They  may,  with  safety, 
dispose  of  seven  hundred  and  fifty 
shares,  to-  widows  and  orphans,  and  lit- 
erary and  charitable  institutions,  for 
these  mill  never  interfere  ivith  bank  ma- 
nagement" 

This,  Mr.  B.  exclaimed,  is  the  way 
and  manner  hi  which  the  stock  passes 
to  the  widows  and  orphans  which  the 
committee  had  heard  of,  by  the  Presi- 
dent and  other  gentlemen.  Did  any 
one  ever  hear  of  their  having  to  do 
with  institutions  of  the  kind  in  the  first 
instance  1  Did  you,  Mr.  Chairman,  ever 
find  them  struggling  at  sales  for  bank 
stock.  No,  sir,  said  Mr.  B.  nor  never 
would. 

It  had  been  his  fortune  to  witness  the 
sales  of  the  stock  of  the  Western  Bank 
of  Philadelphia'  and  of  the  Girard  Bank, 
and  he  had  no  hesitation  in  saying  that, 
more  outrageous  scenes  of  straggling 
and  strife  for  money  power,  could  not 
have  been  committed.  Clothes  were  torn, 
heads  were  broken,  and  every  outrage 
upon  quiet  and  orderly  conduct  prac- 
tised, that  the  love  of  money  -could  in- 
duce; and  that  too,  in  the  midst  of  this 
city  ot  brotherly  love.  Gentlemen,  after 


10 

what  he  had  seen  in  the  instances  men-  ed  abroad  for  commodities  useful  in  the 
tioned,  might  save  themselves  the  trou-  arts,  or  for  household  consumption." 
ble  of  telliug  him,  that  such  mob-like  But  it  is  not  true,  that  silver  money 
conduct  was  for  the  public  good  alone,  produces  nothing.  It  is  as  productive 
or  mere  six  per  cent  intererest.  But  as  any  other  labor-saving  machine.  Its 
the  gentleman  from  Crawford,  (Mr.  Far.  uses  in  commerce  are  as  great  as  the 
relly)  says  it  is  right  and  fair  -enough  steam  engine  in  manufactures, 
for  a  man  to  engage  in  banking  in  view  Neither  is  it  true  that  the  aggregate 
of  making  the  most  of  his  money.  Fair  capital  of  the  country  is  increased, 
enough,  when  he,  as  an  individual  can-  when  silver  coin  is  displaced  by  bank 
not  make  more  than  six  percent,  be-  notes.  A  mere  exchange  is  made  of  one 
cause  the  law  against  usury,  prevents  capital  for  another.  The  precious  me- 
him  on  loaning  it  to  take  more,  to  en-  tals  are  exported,  and  laces,  wines,  silks, 
gage  in  banking,  hat  he  may  make  six*  sattins,  and  ostrich  feathers  are  received 
teen  or  eighteen  per  cent !  in  return.  A  nation  that  carries  its 

The  arguments  of  other  gentlemen  consumption  of  foreign  luxuries  so  far, 
lead  to  the  same  conclusion,  although  as  to  leave  itself  without  a  suitable  me- 
they  have  spoken  more  cautiously.  dium  for  domestic  exchanges,  may  be 

He  would  now,  he  said,  request  the  compared  to  a  mechanic  who  barters 
attention  of  the  committee  to  what  this  the  tools  of  his  trade  for  the  enjoyments 
writer  has  answered  to  this  question,  of  the  alehouse.  Money  is  the  to'ol  of  all 
Is  paper  money  cheaper  than  specie  ?  trades. 

"  The  events  of  the  last  thirty  years  "  Every  man  desires  money,  because 
have  created  a  suspicion  in  most  men's  he  can  there  with- procure  whatever  else 
minds,  that  there  is  something  not  ex-  he  desires.  If  paper  can  procure  for 
actly  right  in  our  banking  system.  In-  him  the  object  of  his  desire  as  readily  as 
deed,  the  very  head  of  the  system,  the  gold  and  silver,  paper  is  as  desirable  to 
President  of  the  United  States  Bank,  him  as  gold  and  silver.  The  Bank, 
seems  to  be  a  sceptic  as  to  its  utility,  therefore,  finds  borrowers  for  all  the 
He  acknowledges  that  it  is  attended  coin  it  l?as  to  lend,  and  all  the  paper  it 
with  great  danger  ;  but  then  he  says,  deems  it  safe  to  issue.  This  addition  of 
*  the  substitution  of  credit  for  coin  eria-  notes  to  the  amount  of  metallic  money 
bles  the  nation  to  make  its  exchanges  previously  in  circulation,  raises  first  the 
with  less  coin,  and  of  course  saves  the  prices  of  some  articles  and  then  of 
expense  of  that  coin." '  others.  The  borrower  from  the  Bank 

Mr.  Gallatin,  who  is  now  President  of  having  more  money,  -either  paper  or 
the  National  Bank,  at  New  York,  goes  coin,  at  command,  can  offer  an  addi- 
stiil  farther :  tional  price  for  the  object  of  his  desire, 

"The  paper  currency  for  the  precions  or  perhaps  procure  some  desirable  ob- 
metals,  does  not,"  he  says,  "  appear  to  ject  that  was  before  unattainable.  He 
be  attended  with  any  substantial  advan-  from  whom  the  borrower  has  bought, 
tages  in  cheapness."  having  made  a  speedier  sale,  or  perhaps 

Bank  notes,  it  must  be  confessed,  received  a  higher  price  than  would  oth- 
come  very  cheap  to  those  who  issue  erwise  have  been  possible — he  also  has 
them.  But  to  those  who  receive  them,  it  in  his  power  to  obtain  some  object 
bank  notes  come  as  dear  as  gold  and  of  desire  that  was  not  before  within  his 
silver.  reach.  A  third,  a  fourth,  a  fifth,  a  sixth, 

The  farmer  must  give  as  much  of  the  each  in  his  turn,  derives  a  like  ad  van- 
product  of  his  labor  for  a  paper  dollar  tage  from  this  increase  of  circulating 
as  for  a  silver  dollar.  medium.  The  rise  of  prices  is  confined 

"  It  is  alleged  by  some,  that   bank  for  a  time  to  store  goods,  but  it  at  length 
notes  increase  the  aggregate  capital  of  reaches  real  estate,  and  finally  the  wa- 
the  cmmunity,  since  they  cause  silver,  ges  of  labor.     Industry  is  stimulated, 
which  produces  nothing,  to  be  exchang-  and  enterprise   encouraged.    Specula- 
tion is  excited,  private  [credit  is  strain- 


>ed,  and  the  representatives  of  private  rapidly  as  they  had  before  risen.  The 
-credit  are  multipled.  Every  body  is  ac-  traders  find  that  the  goods  in  their  stores 
tive,  an,d  all  branches  of  business  ap-  cannot  be  disposed  of,  unless  at  a  loss." 
.pear  .td*  be  prosperous.  "The  different  members  of  society  had 

"  Nothing  could  be  prettier  than  this,  entered  into  obligations  proportionate  to 
if  prices  could  be  kept  continually  rising,  the  amount  of  circulating  medium  in  the 
But  it  is  unfortunately,,only  while  the  days  of  Banking  prosperity.  The  quan- 
amount  of  Bank  issues  as  actually  in-  tity  of  circulating  medium  is  diminished, 
creasing,  or  for  a  short  time  after  they  and  they  have  not  the  means  of  dis- 
have  attained  their  maximum,  tiiat  so-  charging  their  obligations.  The  mer- 
ciety  derives  this  apparent  benefit  from  chandise,  the  farms,  the  houses,  for 
paper  money.  In  due  time  the  paper  which  they  contracted  debts,  may  be 
affects  all  articles  in  nearly  equal  proper-  still  in  their  possession 4  but  the  product 
tions ;  arid  men  then  discover  that  for  of  the  farms  wiil  not  bring,  perhaps  half 
.an  object  of  desire  for  which  they  had  as  much  as  will  pay  the  interest  of  the 
formerly  to  give  one  dollar,  they  have  original  .purchase  money ;  the  houses 
now.  to  give  one  dollar  twenty-five  cents,  will  not  rent  for  as  much  as  will  pay  the 
or  one  dollar  fifty ;  and  that  it  is  not  interest  on  the  mortgages;  and  the  store 
more  easy  to  get  the  one  dollar  and  fif-  goods  must,  if  sold  at  all,  be  sold  below 
ty  cents  to  make  the  purchase  with,  than  prime  cost.  Bills  of  exchange  are  dis- 
it  was  formerly  to  get  one  dollar.  The  honored,  and  promissory  notes  protest- 
value  of  land,  labor,  and  commodities,  -ed.  One  man  is  unable  to  pay  his  debts, 
as  compared  with  one  another,  is  the  His  creditor  depended  on  him  for  the 
same  as  it  was  before.  It  is  only  the  means  of  paying  a  third  person  to  whom 
money  price  that  is  enhanced.  The  ef-  he  is  himself  .indebted.  The  circle  ex* 
feet  this  has  on  public  prosperity,  is  tends  through  society.  Multitudes  be- 
much  the  same  as  that  which  would  be  come  bankrupt,  and  a  few  successful 
produced  by  changing  accounts  from  speculators  get  possession  of  the  earn- 
pounds,  shillings,  and  pence,  to  federal  ings  and  savings  of  many  of  their  frugal 
money.  The  sum  total  of  dollars  and  industrious  neighbors." 
would  exceed  that  of  pounds,  but  the  "By  the  reduction  of  the  amount  of 
articles  of  the  value  of  which  they  Bank  medium,  the  prices  of  things  are 
would  be  the  exponents,  would  be  un-  lowered,  the  importation  of  some  kinds 
altered  in  number  and  in  Duality."  of  foreign  goods  is  diminished,  and  spe- 

"It  would  be  well  if  the  issues  of  the  eie  is  brought  back.  Then  the  confi- 
Banks  had  no  other  effect  than  that  of  dence  of  the  Banks  is  renewed,  and 
apparently  increasing  the  wealth  of  they  recommence  their  issue  of  paper, 
the  community,  by  raising  the  money  Prices  are  raised  again,  and  speculation 
valuation  of  all  kinds  of  property.  But  is  excited  anew.  But  prices  soon  un- 
these  institutions  do  not  continue  their  dergo  another  fall,  and  the  temporary 
issues  long,  before  they  raise  the  price  and  artificial  prosperity  is  followed  by 
of  some  commodities  above  the  price  real  and  severe  adversity/' 
they  bear  in  foreign  countries,  added  to  "Such,  as  has  truly  been  said  by  Mr. 
the  costs  of  importation.  In  foreign  Biddle,  the  President  of  the  United 
countries  the  paper  of  the.  Banks  will  States  Bank—"  such  is  the  circle  which 
not  pass  current.  The  holders  of  it,  a  mixed  currency  is  always  describing." 
therefore,  present  it  for  payment.  The  He,  Mr.  B.  then  touched  upon  the 
Banks  finding  their  paper  returned,  fear  general  effects  of  the  present  system  of 
they  will  be  drained  of  coin,  and  call  banking,  and  on  that  subject,  the  author 
npon  their  debtors  to  pay  what  has  been  of  the  work,  from  which  he  had  quoted, 
advanced  to  them.  In  two  ways,  then,  expressed  himself  in  the  following  Ian- 
is  the  quantity  of  circulating  medium  guage : 

diminished  :  fii  st,  by  the  exportation  of  "The  rise  of  prices  that  follows  an  ex- 
specie  :  secondly,  by  the  withdrawal  of  pansion  of  bank  medium,  and  the  fall 
paper  from  circulation.  Prices  fall  as  that,  follows  a  contraction,  do  not  affect 


all  descriptions  of  labor  and  commodi- 
ties at  the  same  time  in  an  equal  de- 
gree. The  usual  effect  of  an  increase 
of  issues,  appears  to  be  to  raise  still 
higher  those  articles  which  are  rising 
from  some  natural  cause ;  and  the  effect 
of  a  contraction,  to  sink  still  lower  those 
which  are  falling  from  some  natural 
cause.  Malthus  has  observed,  the  ten- 
dency of  paper  money,  is  in  some  in- 
stances, to  sink  prices  to  their  lowest, 
and  raise  them  in  others  to  the  highest 
point.  Of  rise  of  prices  produced  by 
expansions  of  Bank  issues,  we  had 
striking  examples  in  1825  and  1831, 
and  melancholy  proofs  of  contraction  in 
1820." 

Wages  appear  to  be  among  the  last 
things  that  are  raised  by  an  increase  of 
bank  medium.  The  working  man  finds 
all  the  articles  he  uses  in  his  family  ris- 
ing in  prices,  while  the  money  rate  of 
his  own  wages  remains  unchanged.  In 
the  year  1831,  which  was  a  year  of 
great  expansion,  rents  rose  enormously 
in  many  parts ;  store  goods  advanced 
in  price;  and  such  fresh  provisions  as 
are  sold  in  the  market,  were  higher  than 
they  had  been  at  any  time  since  the  re- 
sumption of  specie  payments  after  the 
suspension;  since  the  war  of  1812;  but 
the  money  rate  of  wages  was  hardly 
affected. 

Suspensions  and  resumptions  of  spe- 
cie payments  only  make  the  effects  of 
contraction  and  expansion  more  ob- 
vious. The  money  of  the  country  is 
paper  money  now,  as  it  was  in  US  15 
and  1816.  Its  countibilrty  finds  limits 
on  its  expansion ;  but  frequent  contrac- 
tions are  necessary  to  keep  it  countible; 
and  expansions  and  contractions  are 
followed  by  very  pernicious  consequen- 
ces. 

As  in  the  case  of  all  public  evils,  the 
system  leans  with  most  hardship  upon 
the  poor.  The  rate  of  wages  is,  as  we 
have  seen,  the  last  thing  affected  by  an 
expansion;  and  one  necessary  conse- 
quence of  a  contraction,  is  to  deprive 
some  men  of  employment.  If  a  rich 
man  cannot  sell  his  merchandise  to-day 
he  can  sell  it  to-morrow ;  and  if  he  can- 
not sell  it  for  full  price,  he  can  sell  it  for 
hal£price.  But  labor  is  the  poor  man's 


only  commodity.     If  he  cannot  sell  ft 
to-day,  it  is  lost  to  him  forever. 

These  are  the  influences,  said  Mr.  B.; 
these  expansions  and  contractions, 
which  the  friends  of  the  amendment  pro- 
posed by  his  friend  from  Fayette  (Mr. 
Fuller,  are  anxious  to  prevent.  They 
do  not  prefer  any  system  which  will, 
like  the  bed  of  Procustus,  extend  their 
business  transactions,  or  contract  them 
at  pleasure  for  the  advantage  of  specu- 
lators. 

The  author  quoted  from,  further  says, 
said  Mr.  B. — "  If  the  speculator  is  a 
bank  director,  or  a  favorite  with  bank 
directors,  happy  is  his  lot.  Is  there  a 
scarcity  of  money  1  It  affects  him  not. 
Money  is  made  more  scarce  with  other 
men,  that  it  may  be  made  plenty  in  his- 
pockets.  Whatever  may  be  the  condi- 
tion of  others,  he  is  in  no  danger,  but 
is  benefited. 

In  the  language  of  the  report  of  a 
committee  of  the  New  York  legislature, 
made  in  1818,  he,  Mr.  B.  would  add, 
"  Of  all  aristocracies  none  more  com- 
pletely enslave  a  people  than  that  of 
money;  and  no  system  was  ever  better 
devised  so  perfectly  to  enslave  a  com- 
munity as  that  of  the  present  mode  of 
conducting  banking  establishments. 
Like  the  syren  of  the  fable,  they  entice 
to  destroy.  They  hold  the  purse-strings 
of  society;  and  by  monopolising  the 
whole  of  the  circulating-  medium  of  the 
country,  they  form  a  precarious  stan- 
dard, by  which  all  property  in  the  coun- 
try, houses,  lands,  debts  and  credits, 
personal  and  real  estates,  of  all  descrip- 
tions, are  valued  ;  thus  rendering  the 
whole  community  dependent  on  them." 

And  Mr.  Jefferson  has,  on  this  subject 
of  banking  institutions,  remarked  : 

"  They  have  taken  deep  root  in  the 
hearts  of  those  from  which  ourlegislatoi  & 
are  taken,  and  the  sop  to  Cerberus,  from 
fable,  has  become  history.  That^aper 
money  has  some  advantages  mist  be 
admitted ;  but  its  abuses  are  also  inevi- 
table, and  makes  a  lottery  of  all  private 
property.'1 

General  Washington,  in  1780,  in  a 
letter  to  a  friend,  writes  as  follows,  rela- 
tive to  the  avarice  of  speculators,  &c. 

Friends  and  foes  seem  now  to  com- 


bine  to  pull  down  the  goodly  fabric  we 
have  been  raising  at  the  expense  of  so 
much  time,  blood,  and  treasure ;  and 
unless  the  body  politic  will  exert  them- 
selves to  bring  things  back  to  first  prin- 
ciples, correct  abuses,  and  punish  our 
uiternalfoes,  inevitable  ruin  must  follow. 
Indeed,  we  seem  to  be  verging  so  fast 
to  destruction,  that  I  am  filled  with  sen- 
sations to  which  I  have  been  a  stranger 
until  these  three  months.  Our  enemies 
behold  with  exultation  and  joy  how  ef- 
fectually we  labor  for  their  benefit,  and 
from  being  in  a  state  of  absolute  des- 
pair, and  on  the  point  of  evacuating 
America,  are  now  on  tiptoe.  Nothing 
therefore,  in  my  judgment,  can  save  us, 
but  a  total  reformation  in  our  own  con- 
duct, or  some  decisive  turn  of  affairs  in 
Europe.  The  former,  alas !  to  our  shame 
be  it  spoken,  is  less  likely  to  happen  than 
the  latter — as  it  is  now  consistent  with 
the  views  of  speculators,  and  the  va- 
rious tribes  of  money  makers  and  stock- 
jobbers, of  all  denominations,  to  conti- 
nue the  means  of  their  own  private 
emoluments,  without  considering  that 
this  avarice  and  thirst  for  gain,  must 
plunge  all,  including  themselves,  in  one 
common  ruin." 

Having  now  said  something  of  the 
origin  and  progress  of  banking — the 
danger  of  the  influence  of  money  upon 
community  and  government,  and  the 
apprehension  many  good  men  had,  that 
the  liberty  of  this  country  would  be 
jeoparded,  undermined,  and  destroyed 
through  the  instrumentality  of  commer- 
cial intercourse,  and  the  late  United 
States  Bank,  he,  Mr,  B.  would,  as  briefly 
as  he  could,  speak  of  the  chartering  of 
the  present  United  States  Bank ;  and  in 
doing  so,  he  desired  gentlemen  to  un- 
derstand, that  he  would  not  willingly 
wound  the  feelings  of  any.  It  was  not 
in  his  composition  to  wantonly  insult 
any  man  or  set  of  men  ;  but  having  a 
duty  to  perform  in  this  matter  for  his 
constituents,  he  must  discharge  it  and 
take  the  consequences. 

If  the  Bank  Presidents,  Cashiers,  Di- 
rectors, Stockholders  and  others,  who 
might  hear  him,  should  set  upon  him, 
as  certain  officers  of  the  army  did  upon 
John  Randolph  of  Roanoke,  after  hav- 


ing called  them  in  debate,  and  while 
Congress  sat  in  this  city,  Ragamuffins, 
he  must  speak  what  he  believed  to  be 
the  opinions  and  will  of  his  constituents. 
The  President  of  the  Convention  has 
spoken  of  "  war  to  the  knife."  Does 
he  remember,  that  the  wise  and  good 
Nathaniel  Macon,  saved  Mr  Randolph 
from  personal  injury,  by  presenting  him- 
self as  his  friend,  with  no  other  weapon 
than  a  common  pen  knife.  Another,  a 
larger  and  a  better  knife  was,  on  this  ac- 
count, afterwards,  presented  by  Mr. 
Randolph  to  Mr.  Macon,  and  subse- 
quently, the  same  knife  was  given  by 
Mr.  Macon  to  the  fearless  Col.  Benton. 
— So  much  for  the  knives. 

However  unwilling  gentlemen  might 
be  to  hear  it,  he  must,  in  the  language 
of  the  gentleman  from  Luzerne,  (Mr. 
Woodward)  say,  the  act  of  assembly, 
authorizing  the  charter,  carrp  upon  the 
people  "  like  a  clap  of  thunder  from  a 
clear  sky;" and  although  the  gentleman 
from  Indiana,  (Mr.  Clarke)  had  been  se- 
verely rebuked,  for  using  the  word  in- 
decent, in  reference  to  the  haste  with 
which  the  act  was  passed,  he  would 
take  leave  to  say,  that  in  the  opinion  of  his 
constituents  and  his  own  opinion,  it  was 
so  passed.  The  gentleman  from  Indiana, 
had,  he  supposed,  used  the  word  in  a 
comparative  sense.  And  if  the  time 
usually  required  for  a  bill  to  pass  in  the 
legislature,  is  the  decent  time,  then  the 
act  of  incorporation  for  the  United 
States  Bank,  was  passed  with  indecent 
haste. 

No  bill  incorporating  a  turnpike  road 
company,  bridge,  insurance,  or  other 
company,  that  he  had  any  knowledge 
of,  ever  was  passed  in  such  haste. 

Gentlemen  may  complain  when  they 
hear  bribery  and  corruption  intimated 
or  alleged  against  certain  Senators.  He 
would  not  say,  thit  either  senators  or 
representatives  were  guilty  of  either  of 
these  things — it  was  not  necessary  on 
this  occasion,  that  he  should ;  but  he 
would  say,  that  many  of  his  constituents, 
and  many  of  the  people  of  the  State, 
believed  there  was  something  improper 
— something  savoring  of  fraud  practised 
upon  them  by  the  passing  of  the  act  of 
February,  1836,  authorising  the  char- 


ter  of  the  United*  States  Bank:  They  monster,  and'  well  it  migHt  being  the 
are  jealous  of  their  rights,  and  rightly  production  of  a  most  unnatural  union — 
so.  Our  constituents,- he  said,  are  so  of  to  say  nothing  of  perfidy — a  union  of 
us.  I  wish  gentlemen,  to  remember,  fragments  of  parties,  as  essentially  dif- 
that  "love  is  strong  as  death,  and  jea-  ferent  as  vinegar  and  oil — of  substan- 
lousy  cruel  as  the  grave."  ces  repulsive  as  the  elements  of  fire  and 

It  was  this  idea  which  caused  the  edi-  water,  and  yet  attracted,  when  a  corn- 
tor  of  a  newspaper  in<  Bedford:  county,  mon  object  was  to  be  gained,  even  in 
and  the  organ  of  a  portion  of  the  peo-  the  production*  of  a  monster.  It  was  a 
pie  of  that  county, tfo  publish  that>  un-  law  of  nature,  that  monsters  never  pro- 
less  the  people  of  the  State  would  get  duced  their  like,  and'  such  another 
relief  from  the  oppression  of  this  insti-  would  not  soon  appear  in  Pennsylva- 
'tutionjthey  "  would  raze  it  to  the  ground,  nia. 

and  strew  salt  upon  its  foundation."  The-  illustration  given  by  his  friend 

Let  gentlemen  turn  to  the  act  itself  from  Susquehanna-  (Mr.  Read)  for  the 
and  after  noticing  the  appropriations  purpose  of  satisfying  the  committee  of 
made  for  one  object  and  another— a  the  impropriety,  on*  sound  moral  princi* 
turnpike  road  here,  a  rail  road  there,  ples>of  the  suspension  of  specie  pay- 
a  bridge  in  one  place,  and  a>  branch  of  ments  by  the  banks,  in  the  month  of 
the  United  States  bank  in  another,  and  May  last  was^  in  his  opinion,  conclusive, 
tell  him  whether  there  was  any  thing  He  had  learned,  that  when  driven  to4he 
"  passing  strange;"  or  wonderful,  in  the  wall,  and  no  room  or  way  left  to  escape, 
suspicions  of  the  public.  even  homicide  might  be  justified.  But 

Sir,  said  Mr.  B.  suspicion  is  fastened  to  allege  that  the  suspending  banks  had 
upon  them  (the- actors  in  that  drama)  as  money  in  abundance  to  satisfy  their 
they  fastened  the  Bank  of  the  United  creditors,  and  yet  refuse  to-do  so,  was, 
States  upon  the  Commonwealth ;;  and  in  the  estimation  of  the  uninitiated,  what 
like  the  shirt  of  Nessus,  .it  cannot  be -re-  in  individual  transactions,  .would  be  con- 
moved;  without  tearing  the  flesh  !  demned* 

It  was  scarcely  necessary  to  occupy  It  was,  he  said,  painful  to  contend 
the  time  of  the  committee  in  rehearsing  with  gentlemen  on  a  subject  of  this 
the  belief  of  many  of  his  constituents  character — a>  subject  involving  every 
and  others  in  the  State,  that  stock  of  the  thing  dear  in  civilization — and  which,  if 
Bank  was  purchased  during1  the  pending  the  principles  contended  for  here,  should 
question  in  the  legislature,  at  depressed  be  carried  out  into  all  the-  relations  of 
prices  \  and  which,,  after  the  char-  life,  as  it  might  be,  would  unhinge  socie- 
ter  was  allowed,  was  sold  at  twenty  to  ty,  and  cause  the  destruction  of  corn- 
thirty  per  cent,  advance — aye,  and  by  merce,  credit,  and  every  institution  in 
certain  Senators-,  who*,  it  was  supposed,  the  State  and  country.  He  hoped  for 
had  sworn  upon  the  altar  of  their  coun-  better  things,  and  would  never  despair 
try,  never  to  aid,  by  word  or  action,  in  of  the  Republic. 

the  passage  of  such  an  act.  He  knew  When  the  question  relative  to  repeal- 
tbey  endeavored  to  excuse  themselves,  ing  bank  and.  other  acts  of  incorpora- 
by  asserting,  that  the  condition  of  the  tlon  should.be  reached^  he,  Mr-.  B.  would, 
finances^f  the  State  required  the  with-  if  he  had  the  opportunity,  take  occasion 
drawal  of  their  hostility,  and  moreover,  to  speak  more  at  large  on  this  -subject, 
their  aid  in  the  project.  And  he  knew  — it  was  an  important  one. 
also,  that  it  had  been  said,  "necessity  He  hadimuch  to<notice  in  the  argu- 
had  no  law.'*  ments  of  the  gentlemen  from  the  city — 

None  that  were  conversant  witty  anct'  the  gentlemen  from  Franklin — the  gen- 
understood  the  condition  of  the  com-  tleman  from  Erie— the  gentlemen  from 
mon  wealth  at  the  time  could  seriously  Allegheny,  Butler,  and  others  on  that 
believe  in  the  necessity.  The  cloak  was  side  of  the  question,  but  he  would'not 
not  large  enough  to  cover  itself.  occupy  any  more  of  the  time  of  th&; 

Tlie  institution  had  been  called.  a<  committee,. 


15 


He  would:  conclude  by  expressing  his 
confident  belief,  that  if  no  notes  of  less 
denomination  than  ten  dollars,  were 
issued  by  the  banks-  of  the  State,  the 
yacuum  would  very  soon  be  filled  with 
gold  and;  silver,  as  had  been  the  case 
after  the- passage  of  the  law  prohibiting 
the  circulation  of  notes  of  a  less  denom- 
ination than  ten  dollars,  and  which,  as 
a  member  of  the  legislature,,  he  aided 
in  passing.  Gentlemen  here  and  else- 
where, might  avow  that  they  would  pre- 
fer five  dollar  notes  *to  half  eagles,  rags 
to  bullion ;  but  without  any  reflection 
upon  such  expressions,  he  must  enter- 
tain a  different  opinion,,  and  vote  ac- 
cordingly,. 


NOTE. — Mr.  Bank*'  was-  prepared  to  answer 
the  arguments  of  gentlemen,  that  the  present 
banking  system  had  cleared  our  lands— built  our 
houses — made  our  towns,  and  villages,  and  cities 
what  they  are. 

He  intended  to  show,  that  these  thingg  had 
been  accomplished  by  labor — the  labor  which 
caused  the  sweat  of  the  brow. 

He  was  also  prepared  to  answer  the  avowal 
of  the  President,  that  commerce  i*  every  thing 
to  man — that  life  itself  had  been  lengthened  by 
it  ! 

He  intended  to  show,  that  letters — the  sciences 
— the  arts  (particularly  printing,)  had  done  more 
for  bettering  the  condition  of  man,  than  com- 
merce. But  he,  without  taxing  the  patience  of 
the  committee,  which  had  already  indulged  him 
very  favorably,  could  not  do-so,  and  he  therefore 
desisted, 


TO  THE  PEOPLE. 


Thesubjoinede^ctfronuhe  Pennsylvania. 
is  a  graphic  sketch  of  part  of  those  low,  long,  black,  the  discovery  of  this  country  by  Columbus,  and 
tricks  andJ  manoeuvres  put  intx/operation  by  the  ending  with  Oseola  in  Florida,  the  interim  filled 
shin  plaster  party  in  the  Reform  Convention,  for  up  with  all  the  low  political  slang  of  the  van 

r  „„  aces  through  which  he  passed—  all  of  which  was 

the  nefarious  purpose  of  defeating  reform  and      -     p«onounceKd  by  the  Present  to  be  "in  order." 
tarding  or  obstructing  the  adoption  of  an  improved     Having  read  all  his  newspapers  and  delivered  in 
svstem  in  the  monetary  concerns  of  the  Common-    detail  all  the  elegant  epithets  he  could  find  in 
,L,,n;  and  *  effec.uaUy  fasten  the  to*  and    ^^^1£S&$3S&-$£ 
pirate  aristocracy  of  avarice  upon  the  Body  Politic.     foco  „  &c  none  of  which  however  were  either 
The  people  will  profit  by  this  additional  evidence    listened  to  or  noticed  by  the  reformers,  he  took 
of  shameless  prostitution  of  honor  and  honesty,  on    himself  off,  as  had  ,  lone  Dunlop  and  some  other  of 
'thepartofthesuborned  advocatesof  irresponsible    ^tie^^eLm^w^ain  attempted  to 
chartered  corporations;  and  the  cause  of  reform    get  a  vote>  w|ien  another  of  the  hundred  motions 
and  human  improvement  must  and  will  acquire     to  adjourn  was  made.    The  rule  of  the  Conven- 
addiiionann^inifconward  march  by.hede-    tondoes  nota^the  ^and  -^onon* 
tection  and  public  exposure  of  the  sneaking,  sims-     S[Q^  which  afe  gaid  to  have  been  suspected  sev- 
stermeannesses,andSer£«intisnw  of  its  opponents.     0rai  members  of  the  Convention    had   called 
WPFORM    POIWFNTION  throughout  the  evening  for  tellers,  which  had 

been  appointed  by  the  chair,  butm  this  latter  m- 

It  will  be  seen  by  our  report  of  the  proceedings  gtance  tney  were  refused,  and  the  President  said 
of  this  body,  that  an  amendment  restricting  the  he  wou.d  decide  for  himself,  and  declared  that 
Legislature  on  the  subject  of  Bank  charters  has  there  were  55  for  the  adjournment  and  53  against 
been  passed  by  a  vote  of  8G  to  29.  jt  'Phe  reformers  to  a  man  stood  in  their  places 

The  conservatives  had  voted  down  a  nnmber  ^^  denied  the  correctness  of  the  decision  —  re- 
of  amendments  of  a  similar  character,  by  a  ma-  fused  to  adjourn,  and  appealed  from  the  chair, 
jority  of  one  or  two  votes  in  consequence  of  the  At  t^s  determined  ppposition  the  President  turn- 
absence  of  as  many  of  the  friends  of  reform,  dur-  cd  ^^  and  attempted  to  force  his  decision;  but 
ing  Thursday  and  Friday  morning,,  but  on  Fn-  flnding  his  friends  did  not  back  him,  he  gave  way, 
day  afternoon  the  latter  came  in,  and  it  was  and  app0inted  tellers,  who  returned  54  for  the 
found  that  a  majority  of  the  Convention  were  de-  motion  and  61  against  it  !  So  much  for  the  great 
termined  to  carry  the  subject  through.  Then  john  Sergeant  —  to  whom  it  was  reserved  to  at- 
commenced  a  course  of  action  on  the  part  of  the  tempt  to  defeat  the  popular  will,  by  prostituting 
conservatives,  that  fully  showed  their  reckless-  hig  pOwer  as  presiding  officer  to  what  would 
ness  of  principle.  Every  means  was  tried  to  seem  to  De  an  open  palpable  and  proved  fraud!! 
frighten  the  friends  of  reform—  to  coax  them  by  We  cannot  ciose  this  article  without  doing  jus- 
offers  of  compromise—  to.  weary  them  out  by  long  tice  to  the  members  of  the  democratic  party,  who 
speeches,  filled  with  inflammatory  attacks,  made  Qn  thig  occasion  acted  witn  a  noble  forbearance  and 
only  to  provoke  replies  and  cause,  delay—  mo-  perseverance  that  does  them  honor.  Only  one 
lions  to  postpone  —  calls  of  the  previous  question,  deserter  was  found—  D.M.  Farrelly  of  Crawford  : 
and  motions  to  adjourn.  All  this  was  kept  up  J.M.  Porter  voted  with  the  conservatives  occa- 
until  one  o'clock  in  the  morning,  when  the  vote  sionaliy  ;  Mr.  Fry  of  Lehigh,  once  by  mistake  ;  but 
was  taken,  and  after  all  their  opposition,  many  of  lhege  losses  were  more  than  made  up  by  the  un- 
the  conservatives  voted  for  it,  finding  it  would  filching  firmness  and  devotion  to  honest  princi- 
pass.  pies  of  Hiester  of  Lancaster,  McDowell  of  Bucks, 

During  the  afternoon  and  early  part  of  the  even-  &nd  Seitzer  of  Lebanon,  whom  neither  party  smiles 
ing,  Messrs.  Hopkinson,  Meredith,  Scott,  andoth-  could  geduce  nor  party  frowns  intimidate  from 
ers,  tried  every  means  in  their  power  to  deleat  doil)cr  what  they  considerd  their  duty.  Purviance 
the  proposed  amendment.  Then  Dickey  came  Of  B^tier)  and  gturdevantof  Luzerne  voted  gen- 
to  the  charge  with  his  "legislative  tact"^  at  the  erajiy  with  the  reformers,  and  Merkel  of  Cumber- 
previous  question,  and  "  postponement."  Dun-  land  ren(jered  the  cause  some  aid  when  it  was 
lop  brought  up  his  light  troop  of  "motions"  and  mogt  needed>  The  County  members,  all  but  Mr. 
"speeches"  that  would  have  gained  him  great  a"p-  Butier>  who  has  been  absent  for  some  time  by 
plause  as  the  clown  of  a  circus,  but  which  were  indisposition,  were  all  in  their  places,  and  votec 
suffered  to  pass  in  the  Convention  without  even  &g  Qne  man  throughout  for  reform;  the  Citj 
a  laugh.  Cox,  with  the  vanguard,  entered  the  membera  all  against  it. 
field  at  near  eleven  o  clock,  and  regaled  a  few 


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